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Biggest Cryptocurrency in the world, Bitcoin has left a critical price support position, hitting a one-month low as the US tax season is about to close.
The top digital coin fell to $38,577 as of late Asian trading hours. According to data from CoinDesk, this level was last seen in March.
From trading analytics, since Bitcoin started its latest decline, it has lost over 17%, although it has tested the waters at a price of above $48,000 a few weeks back.
At the moment, this decline in the price of Bitcoin looks like it is rooted in tax-related sales and also a dark macro environment.
According to the U.S laws, the US investors have a deadline of Monday, April 18, 2022, to submit the tax returns for 2021 or file for an extension to pay.
Considering the previous data, there is a pattern that seems to be repeating itself at the moment. In 2021, when the tax season was ongoing, between January 1st and April 15th, the market investors also sold their digital assets.
It seems that the selling pressure that’s causing this price decline is coming from short-term traders that are holding significant amounts of Bitcoin.
So, as Bitcoin trading volumes are going down, investors all over the world are worried it is going to get worse for a while.
A positive side to all these is that Bitcoin has remained around the $40K mark for the last few months. Just maybe all is not doom, after all.